MP Materials vs. Enterprise Products: Which "Boring" Business Actually Has the Better Growth Case?

MP Materials (NYSE: MP) and Enterprise Products Partners (NYSE: EPD) operate as indispensable, hard-to-replicate infrastructure assets at the very top of vital industrial supply chains, but the similarity ends there.

Neither stock is actually boring, though mining and energy stocks are often stuck with that label. MP Materials is the leading rare-earth mining company in the U.S. It also processes rare earths, mainly for permanent magnets. It was founded in 2017 and went public via a merger with a special-purpose acquisition company (SPAC) in 2020.

Midstream energy pipeline operator Enterprise Products Partners was founded in 1968 and went public in 1998. Its revenue comes from the toll-like fees that it charges users of its pipelines.

When you compare each company's growth, the choice comes down to MP Materials' high-beta top-line acceleration versus Enterprise Products Partners' steady, utility-like income expansion.

Image source: Getty Images.

MP Materials is seeing huge top-line growth

Shares of MP Materials, though well off their 52-week high of $100.25, are up more than 15% so far this year. The company isn't profitable yet, but thanks to huge revenue growth, it could get there soon.

The U.S. Department of Defense (DoD) provided the company with early research and development funding and serves as a primary capital partner and commercial backstop for MP Materials, de-risking its expansion from a mining company into an integrated domestic rare-earth processor. That includes a $150 million loan and a $400 million equity investment from the DoD to MP Materials in 2025.

In the second quarter, the company reported revenue of $108.5 million, up 89% year over year. It also reported an earnings per share (EPS) loss of $0.11, a 42% improvement over the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $28.5 million, compared to an adjusted EBITDA loss of $12.5 million in Q2 2025.

The key to the turnaround is the U.S. government's public partnership with MP Materials on rare metals and the company's pivot from selling unrefined rare-earth concentrate to China and moving to fully refined Neodymium-Praseodymium (NdPr) oxides, metals, and magnet manufacturing.

Enterprise Products Partners is boring -- in a good way

Enterprise Products Partners' shares are up a little more than 21% so far this year. The company's revenue comes from charging fees for transporting, processing, and storing energy products, including natural gas, natural gas liquids, and crude oil, through its 50,000 miles of pipelines, liquid storage facilities, and marine export terminals.

In Q2, Enterprise reported revenue of $18.3 billion, up 60.7% year over year. EPS was $0.84, up 27.3% over Q2 2025.

The company is a favorite of income-oriented investors because of its high-yielding dividend. Its yield, at its current share price, is around 5.66%, slightly more than five times that of the S&P 500 average. Because of that high yield, investors look at the company's distributable cash flow (DCF) to judge the safety of its dividend. In the quarter, it reported a record DCF of $2.3 billion, up 21% year over year, and providing 1.9x coverage of the dividend.

The company has raised its quarterly dividend for 28 consecutive years, including a 2.8% raise this year to $0.56 per share.

The choice depends on your situation

Both stocks offer strong cases for investment. MP Materials is seeing strong revenue growth and, thanks to a significant lift from the DoD, it's getting closer to profitability. Like any mining stock, particularly in rare-earth mining, it poses risks due to the high costs of mining and processing.

For my money, Enterprise Products Partners is a better investment. Its revenue streams are more stable and diverse, and its rate of revenue growth, though lower than MP Materials', is hardly lacking.

On top of that, its dividend is well covered and has steady growth, providing an extra layer of security for investors.

James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.